The Stock Market index’ is off around 1/5% an hour before the open. Of note, Most everything in the red, except Gold and the dollar which are hovering around unchanged
To me, this is a negative pre-market bias. Although, with TLT down there might be some chances of a gap fill. But, lately, the correlation between TLT and the markets has not been that reliable.
I exited both SSO and LOW shortly after the open yesterday for a slight gain on the trades. Low lost and SSO gained.
These SPY mean reversion trades have been as solid as any trades I make. Almost scary how well they have been doing. They do not come around that often but when they do, so far its been very profitable.
On the news front, we still have the Saudi embassy incident mulling around in the media. What is interesting to me is that so far, all facts have come from anonymous Turkish sources none of which were eyewitness’. In addition, none of the reporters have seen or heard the tapes that supposedly exist. Only the Turks.
Not that I am a skeptic but making decisions based upon a media narrative of uncorroborated rumors from a Turkish regime that has a vested interest in interfering with the U.S. Saudi relations seems to be stretching it.
Yes the U.S. media has gone as far as accusing the White House to be complicit in murder And some members of Congress are calling for the leader of Saudi Arabia to step down!
Being a former trial attorney I guess I am biased a bit as to the need for evidence before making decisions that might affect international relations.
Let’s see how all this plays out, but my guess is the truth is going to be nowhere near what the Turks are trying to sell.
The next bit of news is the caravan heading to the southern border. Last count it was 4 to 5,000 and set to arrive around election day. I wonder who set this in motion?
Not much new on the geopolitical front between China and Russia. The news is taking a breather before the next blowup.
On the positive front, the U.S. has returned to #1 in economic growth for the first time since 2008. Must be why the stock market has been going straight up:)
One other bit of news that has some significance is the FED. They just will not quit. More rate hikes with the statement that they might hike rates above the neutral point!
Seems to me to be very irresponsible since the U.S. Debt is financed with short-term debt. In addition, the stronger dollar is working against the U.S. on trade. I wonder how long Powell is going to keep his job? If it were me he would have been gone yesterday.
I would bring Bernanke back as he would be more in line with the White House agenda for the Country.
Election day is less than 3 weeks away. Expect much more volatility in the stock market along with much more civil violence in the U.S. Unfortunately, these are the times we live in right now.
I remember the 60s, and they do not seem anywhere nears as tumultuous as they are now. But that has been a while ago: Memories fade a bit, especially with the “Make love not War” and weed generation.
The stock market is still oversold, but not near what it was a week ago. I am back to waiting on mean reversion, and now just looking at short-term swings.
If you want to follow some of my trades along with my thoughts typically given after the open you can go to @rickjswings. Typically I talk about the overall day expected with the markets and also give some levels on the ES and NQ for failed breakout scalping.
It’s my private twitter feed for the stock market and its free. Sports Handicapping is the subscription-based part of this site. But considering the cost of joining it’s almost free:)
Good Luck Today
RickJ’s Handicapping Picks